Our Integrated Strategy is oriented to generate value to all our stakeholders considering our priorities, capitals and risks.

Capitals	company engagement
Human	One of the pillars of our strategic business framework is encouraging the comprehensive professional and personal development of our people. Through our continuous evolution, we are creating a strong, unified corporate culture, founded on the cornerstones of inspirational leadership, talent management and development, and innovation. In this way, we look to attract, retain, and develop the best multicultural talent to ensure our sustainable success.
Natural	Our business is committed to the responsible use of our natural resources. As the main ingredient in our beverages, we have a comprehensive water strategy, focusing on ensuring efficient water management in our operations, facilitating access to safe water and sanitation in our communities and implementing water conservation and replenishment projects to the environment. We also work to increase energy efficiency across our value chain, while integrating clean and renewable energy to reduce our carbon emissions. In addition, we optimize our packaging materials through continuous packaging innovation; increase in the use of recycled materials and participation in schemes and models that support post-consumption collection.
Social and Relationship	Our communities and other stakeholders are key enablers of our business success. Accordingly, we are committed to creating economic, environmental, and social value by encouraging dialogue and collaboration with our neighbors and stakeholders in order to develop and implement programs and initiatives that address their particular needs, and guarantee the continuity of our social license to operate.
Financial	Our financial and operating discipline, strong capital structure and financial flexibility, passionate team of professionals, transformational initiatives, and adaptability to changing market dynamics enable us to capture organic and inorganic growth opportunities in our industry, while creating sustainable value for our investors.
Intellectual	Through our centers of excellence (CoEs), our business is creating sustainable competitive advantages across our value chain. By developing our critical commercial, supply chain, and manufacturing, distribution and logistics capabilities—while designing and deploying key transformational initiatives—our CoEs drive innovation, generate operating efficiencies and savings, and foster intellectual development across our organization.
Manufactured	Through our highly experienced team of specialists, we operate 64 bottling plants and 324 distributions centers across 10 countries, our company delivers approximately 4 billion unit cases through a primary and secondary fleet of 30,000 trucks to 2.8 million points of sale and serves a population of 381 million annually.

Comprehensive risk management

Our company is present in different countries and regions all over the world. Consequently, we are continually exposed to an environment that is full of challenges and risks. Our ability to manage the risks that may arise in the global environment where we operate is vital for our business value creation. Accordingly, our strategy includes a Comprehensive Risk Management Process through which we are able to identify, measure, assess, prevent and/or mitigate risks.

	Description	Potential Impacts	Key Mitigation Actions
Strategic shareholder relationships	Our business depends on our relationship with The Coca-Cola Company and FEMSA, and changes in this relationship may adversely affect us.	Termination of the bottler agreements Actions contrary to the interests of our shareholders other than The Coca-Cola Company and FEMSA.	Comply with our bottler agreements Work together and promote effective interaction between our strategic shareholders in order to maximize growth and profitability and create value for all of our shareholders
Consumer preferences	Changes in consumer preferences, purchase drivers, and consumption habits might reduce demand for some of our products.	Reduction in the demand for our products	Diversify our product portfolio with delicious and nutritious options Provide a wide portfolio of products and presentations Expand our array of low- and zero-calorie beverages Promote healthy habits
Coca-Cola trademarks	Coca-Cola’s brand reputation or brand violations could adversely affect our business.	Damage to Coca-Cola’s trademark reputation	Maintain the reputation and intellectual property rights of Coca-Cola trademarks Effective brand protection Strictly comply with Responsible Marketing Policy
Competition	Our competition could adversely affect our business, financial performance, and results of operations.	Changes in consumer preferences Lower pricing by our competitors	Offer affordable prices, returnable packaging, effective promotions, access to retail outlets and sufficient shelf space, enhanced customer service, and innovative products Identify, stimulate, and satisfy consumer preferences
Cyber attacks	Service interruption, misappropriation of data or breaches of security could adversely affect our business.	Financial loss Interruption of operations Unauthorized disclosure of material confidential information	Identify and address cyber threats Provide training for information protection
Economic, political, and social conditions	Adverse economic conditions, political and social events in the countries where we operate and elsewhere and changes in governmental policies may adversely affect our business, financial condition, results of operations, and prospects.	Affect and reduce consumer per capita income, which could result in decreased consumer purchasing power Lower demand for our products, lower real pricing of our products or a shift to lower margin products Negatively affect our company and materially affect our financial condition, results of operations, and prospects	Through a risk management strategy, hedge our exposure to interest rates, exchange rates, and raw material costs Annually or more frequently evaluate, when the circumstances require, the possible financial effects of these conditions and, to the extent possible, anticipate mitigation measures
Regulations	Taxes and changes in regulations in the regions where we operate could adversely affect our business.	Increase in operating and compliance costs Restrictions imposed on our operations	Map regulatory risks and proposals of changes to regulations that directly affect our operation or financial condition Advocacy work to provide advice on legislators’ proposed regulatory changes
Legal proceedings	Unfavorable results of legal proceedings could adversely impact our business.	Investigations and proceedings on tax, consumer protection, environmental, and labor matters	Comply with applicable laws and regulations and comply with workplace rights policy
Acquisitions	Inability to successfully integrate acquisitions or achieve expected synergies could adversely affect our operations.	Difficulties and unforeseen liabilities or additional costs in restructuring and integrating bottling operations	Integrate acquired or merged businesses’ operations in a timely and effective way, retaining key qualified and experienced professionals
Foreign exchange	Depreciation of the local currencies of the countries where we operate relative to the U.S. dollar could adversely affect our financial condition and results.	Financial loss Increase cost of some raw materials Adversely affect our results, financial condition, and cash flows in future periods	Closely monitor developments that may affect exchanges rates Hedge our exposure to the U.S. dollar with respect to certain local currencies, our U.S. dollar-denominated debt obligations, and the purchase of certain U.S. dollar-denominated raw materials
Climate change	Adverse weather conditions could adversely affect our business and results of operations.	Negatively affect consumer patterns and reduce sales Affect plants’ installed capacity, road infrastructure, and points of sale	Support and comply with climate change measures for adaptation and mitigation Identify and reduce our environmental footprint through efficient use of water, energy, and materials
Social media	Negative or inaccurate information on social media could adversely affect our reputation.	Damage to Coca-Cola’s trademark reputation without affording us an opportunity for correction	Effective brand protection Proactive external communication
Water	Water shortages or failure to maintain our current water concessions could adversely affect our business.	Water supply may be insufficient to meet our future production needs Water supply may be adversely affected due to shortages or changes in governmental regulations or environmental changes Water concessions or contracts may be terminated or not renewed	Efficient water usage Execute water conservation and replenishment projects Maintain 100% legal compliance Develop Water Risk Index, including four issues that need to be assessed: Community and Public Perception Risks, Scarcity of Water and other Inputs, Regulatory Risks, and Legal Risks for each of our bottling plants Implement a water risk assessment methodology that contemplates aspects such as climate change, resilience to hydrological stress, media and social vulnerabilities, as well as regulations and production volumes for each of our bottling plants
Raw materials	Increases in the price of raw materials we use to manufacture our products could adversely affect our production costs. Insufficient availability of raw materials could limit the production of our beverages.	Increase in our cost of goods sold Shortage or insufficient availability of raw materials may adversely affect our capacity to ensure production continuity Adjustments to our product portfolio according to availability	Implement measures to mitigate the negative effect of product pricing on our margins, such as derivative instruments Proactively address risk of supply on our value chain Strictly comply with our Supplier Guiding Principles Strategically adjust our product portfolio to enable us to minimize the impact of certain operating disruptions